The UAE is one of the fastest-growing economies in the Middle East. Thanks in part to its oil reserves, as well as the growing popularity of Dubai. Especially, as being the center for retail shopping and high-rise residences, the UAE is becoming a heavy industrial nation as well. With this growing globalization and industrialization, furniture industry in the region has emerged to be one of the strongest industries.
Furniture manufacturers and suppliers are among the major contributors to the development of infrastructure in the country. With increasing population in the major cities here has resulted in huge demand for modern, and stylish furniture products. Also, this industry is contributing significantly to the national economy by its domestic and international business.
UAE – Improving economic status globally
According to a report by the OEC, the UAE is currently the world’s 26th largest export economy. With imports amounting to nearly $210 billion as well as export trade worth more than $180 billion, UAE is set to become a leading exporter of various industrial products. This is also largely due to the intense investment by multinational companies from other countries, mainly Asian countries into the industrial infrastructure of the country. For furniture being an important part of any infrastructure project, the furniture industry has expanded significantly.
The UAE Furniture Industry outlook
According to another research report on imports by UAE, the International Trade Center estimates that around $3.9 billion worth of furniture was imported by the UAE in 2015. Another industrial report, this time from data compiled by Dubai Exports, suggests that UAE has become the leader in furniture production with more than 600 furniture manufacturing units in operation in the country. Apart from this, the report also suggested that UAE furniture industry investment was worth more than $270 million last year. This figure represents around 1.2% of the total manufacturing sector investment in the country. The significant sectors where furniture is being used in bulk include hospitals, schools, institutions, offices, hospitality and industrial set ups
UAE and South Korea – Strong trade relationships
A report by OEC (Observatory of Economic Complexity) indicates that the trade relations between South Korea and UAE are about to become increasingly stronger. UAE currently exports products worth around $14.8 billion to South Korea, while the country mainly imports electronic consumer goods (worth around $1.4 billion) annually apart from other items, including vehicles, industrial machinery, iron and steel products, plastics, etc.
Focus on UAE-South Korea international trade
As is evident from these comprehensive research studies, UAE and South Korea already share a strong trade bond between them, and the increasing exchange of furniture commodities between the two nations is set to increase intensively. It is necessary for the hundreds of big and small furniture manufacturers to focus on the lucrative Asian furniture market, especially with South Korea seeing the already good trade relations with the country.
Increasing manufacturing power of UAE-based furniture industries as well as improved trade relations with South Korea are the main factors that will drive the two nations’ furniture industry forward at a faster pace.